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- President Trump expressed disappointment in Elon Musk over his criticism of the Republican budget bill.
- Musk fired back, claiming President Trump’s election win was partly due to his support and making unsubstantiated claims about President Trump’s involvement in the Epstein files.
- The feud led to a significant drop in Tesla’s stock, with shares falling over 14% and Musk losing around $20 billion.
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Quick Brief
2-Minute Digest
Essential Context
The public feud between President Trump and Elon Musk escalated on June 5, 2025, over disagreements on the Republican budget bill. President Trump criticized Musk for opposing the bill, which includes several of the administration’s key priorities, such as extending the 2017 tax cuts and boosting military and border security spending.
Core Players
- Donald Trump – President of the United States
- Elon Musk – CEO of Tesla and SpaceX
- Tesla – Electric vehicle and clean energy company ($150B market valuation loss)
- SpaceX – Aerospace manufacturer and space transport services company
Key Numbers
- 14% – Drop in Tesla’s stock following the feud
- $20B – Elon Musk’s personal loss due to the stock drop
- $250M – Amount Musk spent backing President Trump’s 2024 campaign
- 1.5 hours – Duration of President Trump’s call with Chinese President Xi Jinping on trade issues
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The Catalyst
President Trump’s budget bill, known as the “One Big Beautiful Bill Act,” has been a point of contention. Musk criticized the bill, particularly for removing a Biden-era electric vehicle tax break that benefited Tesla. President Trump responded by expressing his disappointment and suggesting he could terminate Musk’s governmental subsidies and contracts.
Inside Forces
The relationship between President Trump and Musk has been complex. Musk had previously supported President Trump’s campaign with at least $250 million. However, their alliance has rapidly deteriorated over policy disagreements. Musk’s criticism of the budget bill and President Trump’s tariff policies has led to a public and intense feud.
Power Dynamics
President Trump holds significant power in this feud, given his ability to influence government contracts and subsidies crucial to Musk’s businesses. Musk, however, has substantial financial and public influence, which he has used to counter President Trump’s criticisms. The feud has highlighted the delicate balance between political support and business interests.
Outside Impact
The public spat has had immediate financial consequences for Tesla, with its stock plummeting over 14%. This drop not only affected Musk’s personal wealth but also reflected broader market concerns about the stability of tech giants under political pressure. The feud also underscores the broader implications of political conflicts on business and the economy.
Future Forces
The ongoing feud is likely to continue influencing both political and business landscapes. Key areas to watch include:
- Regulatory changes affecting electric vehicles and aerospace industries
- Impact on future political campaigns and donor relationships
- Potential shifts in market valuations of tech companies under political scrutiny
- Long-term effects on U.S.-China trade relations following President Trump’s call with Xi Jinping
Data Points
- June 5, 2025: President Trump and Musk’s public feud escalates
- 2024: Musk spends at least $250M backing President Trump’s campaign
- $150B: Market valuation loss for Tesla due to the feud
- 1.5 hours: Duration of President Trump’s call with Chinese President Xi Jinping on trade issues
The intense public feud between President Trump and Elon Musk highlights the complex and often volatile relationship between political leaders and influential business figures. As this conflict continues to unfold, it will likely have significant implications for both the political and business worlds.
